Problem 10-6A Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-4, 10-5, 10-7)

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Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders equity during 2021, its first year of operations:

January		2		Issue 110,000 shares of common stock for $70 per share.
February		14		Issue 60,000 shares of preferred stock for $12 per share.
May		8		Purchase 11,000 shares of its own common stock for $60 per share.
May		31		Resell 5,500 shares of treasury stock for $65 per share.
December		1		Declare a cash dividend on its common stock of $0.25 per share and a $36,000 (6% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.)
December		30		Pay the cash dividends declared on December 1.

Problem 10-6A Part 1

Required:

1. Record each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Prepare the stockholders equity section of the balance sheet as of December 31, 2021. Net income for the year was $490,000. (Amounts to be deducted should be indicated by a minus sign.)